Q2 2025 Financial Results Overview American Tower reported mixed Q2 2025 results, with revenue growth driven by U.S. demand and CoreSite, offset by a net income decrease due to foreign currency losses Consolidated Highlights American Tower reported mixed Q2 2025 results, with revenue up 3.2% to $2.63 billion, but net income down 58.1% due to foreign currency losses - CEO Steven Vondran highlighted strong demand for the company's global portfolio, driven by midband upgrades, densification in the U.S., and double-digit growth at CoreSite2 - The significant decrease in net income was primarily attributed to foreign currency losses of approximately $(484.0) million in Q2 2025, compared to losses of $(21.7) million in the prior-year period46 - The financial results reflect the sale of the company's operations in India (ATC TIPL), now reported as discontinued operations, with prior period results adjusted for comparability5712 Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Growth Rate | | :--- | :--- | :--- | | Total Revenue (in millions) | $2,627 | 3.2% | | Net Income (in millions) | $381 | (58.1)% | | Adjusted EBITDA (in millions) | $1,752 | 1.8% | | AFFO per Share ($) | $2.60 | (6.8)% | | Adjusted AFFO per Share ($) | $2.60 | 2.4% | Capital Allocation & Leverage The company managed capital through shareholder distributions, strategic acquisitions, and debt management, maintaining a Net Leverage Ratio of 5.1x Capital Allocation Overview In Q2 2025, capital was allocated to $1.70 per share distributions, $313 million in capital expenditures, and $185 million in acquisitions Q2 2025 Common Stock Distributions | Metric | Value | | :--- | :--- | | Distributions per share ($) | $1.70 | | Aggregate amount (in millions) | $796.0 | | Year-over-year per share growth | 4.9% | - Total capital expenditures were approximately $313 million, with $40 million designated for non-discretionary capital improvements and corporate capital expenditures10 - The company spent approximately $185 million on acquisitions, primarily for a multi-tenant data center facility in Denver (DE1), adding incremental customer leases and capacity for future development11 Leverage and Financing Overview As of June 30, 2025, American Tower maintained a Net Leverage Ratio of 5.1x and total liquidity of approximately $10.5 billion, actively managing its debt Net Leverage Ratio as of June 30, 2025 | Metric | Value (in millions) | | :--- | :--- | | Total debt | $37,485 | | Less: Cash and cash equivalents | $2,076 | | Net Debt | $35,409 | | Second quarter annualized Adjusted EBITDA | $7,007 | | Net Leverage Ratio | 5.1x | - Total liquidity stood at approximately $10.5 billion, comprising $2.1 billion in cash and $8.4 billion available under revolving credit facilities15 - Key financing activities during the quarter included repayment of €500.0 million and $750.0 million of senior unsecured notes, issuance of €500.0 million of 3.625% senior unsecured notes due 2032, and repayment of $525.0 million outstanding under the 2015 Securitization161718 Full Year 2025 Outlook American Tower updated its full-year 2025 outlook, raising property revenue and Adjusted EBITDA guidance while reducing net income due to foreign currency impacts Updated Guidance and Assumptions The company raised its 2025 outlook for property revenue and Adjusted EBITDA, but reduced net income guidance due to unrealized foreign currency losses - The company is raising the midpoints of its full-year 2025 outlook for property revenue (by $165M), Adjusted EBITDA (by $120M), and AFFO per share (by $0.12), driven by core outperformance and favorable foreign currency exchange rates23 - The midpoint for net income outlook is being reduced by $400 million, primarily due to unrealized foreign currency losses23 - Midpoint property revenue growth expectations by segment are: U.S. & Canada at (0.3)%, International at 4.6%, and Data Centers at 13.0%25 Full Year 2025 Outlook (Midpoint) | Metric | Midpoint | Midpoint Growth vs. Prior Year | | :--- | :--- | :--- | | Total property revenue (in millions) | $10,210 | 2.8% | | Net income (in millions) | $2,390 | 4.8% | | Adjusted EBITDA (in millions) | $7,040 | 3.3% | | AFFO per Share ($) | $10.555 | 0.2% | | Adjusted AFFO per Share ($) | $10.555 | 6.0% | 2025 Outlook for Capital Expenditures (Midpoint) | Category | Amount (in millions) | | :--- | :--- | | Discretionary capital projects | $880 | | Ground lease purchases | $210 | | Start-up capital projects | $75 | | Redevelopment | $335 | | Capital improvement | $160 | | Corporate | $10 | | Total | $1,670 | Unaudited Financial Statements and Reconciliations This section presents unaudited consolidated financial statements and reconciliations of GAAP to non-GAAP measures for Q2 2025 Consolidated Balance Sheets The balance sheet as of June 30, 2025, shows total assets of $63.8 billion and total liabilities of $53.3 billion, both increasing since year-end 2024, with total equity growing to $10.5 billion Selected Balance Sheet Items (in millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $3,601.4 | $3,178.8 | | Property and Equipment, net | $19,799.8 | $19,056.8 | | Total Assets | $63,754.5 | $61,077.4 | | Total current liabilities | $5,863.6 | $7,075.6 | | Long-term obligations | $35,193.7 | $32,808.8 | | Total Liabilities | $53,275.6 | $51,428.7 | | Total Equity | $10,478.9 | $9,648.7 | Consolidated Statements of Operations For the three months ended June 30, 2025, total operating revenues increased to $2.63 billion, but net income attributable to common stockholders fell sharply to $366.8 million due to a $484.0 million unrealized foreign currency loss Statement of Operations Highlights - Three Months Ended June 30 (in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total operating revenues | $2,626.9 | $2,544.7 | | Operating Income | $1,197.7 | $1,156.2 | | Net Income | $380.5 | $908.4 | | Net Income Attributable to AMT Common Stockholders | $366.8 | $900.3 | | Diluted Net Income per Share | $0.78 | $1.92 | Consolidated Statements of Cash Flows For the six months ended June 30, 2025, cash provided by operating activities was $2.58 billion, while cash used for investing activities increased to $841.2 million and financing activities used $1.75 billion Cash Flow Summary - Six Months Ended June 30 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $2,576.5 | $2,622.1 | | Cash used for investing activities | $(841.2) | $(525.3) | | Cash used for financing activities | $(1,750.5) | $(1,418.1) | | Net increase in cash | $101.4 | $525.2 | Consolidated Results by Segment Q2 2025 segment performance showed strong revenue growth in Europe, Africa & APAC, and Data Centers, with international organic tenant billings growth at 6.5% Q2 2025 Revenue Growth by Segment (vs. Q2 2024) | Segment | Revenue Growth (%) | | :--- | :--- | | U.S. & Canada | (0.6) | | Latin America | (13.2) | | Africa & APAC | 12.4 | | Europe | 14.5 | | Data Centers | 13.5 | Q2 2025 Organic Tenant Billings Growth by Segment | Segment | Growth Rate (%) | | :--- | :--- | | U.S. & Canada | 3.7 | | Latin America | 2.9 | | Africa & APAC | 13.0 | | Europe | 5.1 | | Total International | 6.5 | | Total Property | 4.7 | Non-GAAP Reconciliations This section provides detailed reconciliations for key non-GAAP metrics, including Net Income to Adjusted EBITDA and AFFO, demonstrating adjustments for non-cash items and financing costs Reconciliation of Net Income to Adjusted EBITDA - Q2 2025 (in millions) | Item | Amount | | :--- | :--- | | Net income | $380.5 | | Adjustments (Taxes, Interest, D&A, etc.) | $1,371.3 | | Adjusted EBITDA | $1,751.8 | Reconciliation of Net Income to AFFO - Q2 2025 (in millions) | Item | Amount | | :--- | :--- | | Net income | $380.5 | | Nareit FFO Adjustments | $384.2 | | Nareit FFO attributable to AMT common stockholders | $764.7 | | AFFO Adjustments | $453.6 | | AFFO attributable to AMT common stockholders | $1,218.3 | Other Information This section defines non-GAAP financial measures and includes cautionary language regarding forward-looking statements Non-GAAP and Defined Financial Measures This section defines non-GAAP and other financial measures like Adjusted EBITDA, AFFO, and Tenant Billings, which management believes provide useful insights into core business performance beyond GAAP measures - The company presents non-GAAP measures like Adjusted EBITDA, AFFO, and Free Cash Flow, as well as defined metrics like Tenant Billings Growth, to provide investors with additional insight into underlying operating trends4041 - Key revenue components are broken down to provide transparency, including Tenant Billings, Straight-line revenue, and International pass-through revenue, to help investors analyze the performance of the real estate portfolio43 Cautionary Language Regarding Forward-Looking Statements This section contains the standard safe harbor statement, warning that forward-looking statements, including the 2025 outlook, are subject to numerous risks and uncertainties that could cause actual results to differ materially - The report identifies several key risk factors that could impact future results, including decreased leasing demand, customer concentration, increased competition, leverage risks, and foreign operations risks like currency fluctuations69
American Tower(AMT) - 2025 Q2 - Quarterly Results